The customer identification process is the crux of the KYC compliance narrative. Identity validation allows businesses to assess the risk of an incoming profile and helps verify credibility. Market intelligence shows that the need for identity verification is on a rapid rise in the banking and financial services sectors.
This demand is indicative of the risks involved in onboarding unverified profiles with suspicious financial backgrounds.
The latest KYC compliance directives issued by federal and international AML watchdogs are now more than ever meticulous in terms of validating the identities of the profiles (customers). This is to counter money laundering, terrorism financing, narcotics trafficking, identity theft, and other methods to compromise and misuse financial systems.
The regulations are embraced by businesses around the world but especially leveraged by banks, financial institutions, lending companies, insurance agencies, and other businesses from industries that are observing an influx of profiles. This is due to the salient advantages KYC compliance brings, such as identity validation, risk assessment, financial background verification, adverse media screening, and many more.
Fundamentally, businesses in 2021 are embracing KYC compliance processes and integrating them in the customer identification process for two main reasons. 1) To prevent being misused by high-risk profiles, and 2) To comply with the federal regulations
However, identity verification doesn’t have to be a complicated process. It is fairly simple and the available automated identity verification options in the market allow businesses to provide sleek onboarding experiences to customers.
The following will discuss in detail a variety of customer onboarding experiences that identity validation enables for businesses.
Real-time identity verification infrastructures like Compliancely can be easily integrated into your customer account opening processes. This would be a smart approach because of the subtlety Compliancely brings to your accounting opening operations.
For example, information once obtained from the customer can be easily validated and verified with real-time data list checks. It is especially useful for digital account opening processes, wherein the KYC information is validated online within a few minutes without the hassles of physical paperwork.
Your internal KYC-centric teams can be powered with automation. Compliancely brings with its real-time identity verification API and bulk verification processes. Your teams can import the bulk data to the platform and select the types of checks to conduct and Compliancely will run the checks, ensuring accuracy and diligence.
Another advantage on the KYC front is that the identity details are validated per the real-time records of the authorized databases, such as the IRS, OFAC, and other official agencies of the government, giving you accurate results per the original data.
Real-time verification plays a crucial role during the digital identity verification process. This means the identity details and proof of identity that you check and validate are searched by the updated, latest records of the sources.
Further, the details are re-screened and validated as and when the details are updated in the authorized databases, giving you real-time identity verification results.
When your verification efforts give you insights into the risk probabilities of a profile, it is always a good idea to continue with your investigations with appropriate due diligence and enhanced due diligence processes.
Priority due diligence processes will help you investigate the risk probabilities of a profile across a variety of data lists, giving you more insights into the profile’s history and engagement with restricted or prohibited activities, such as money laundering, identity theft, and more.
Some of our advanced identity checks allow you to check if a profile is on the watch lists of the government or if the profile has been sanctioned earlier.
Rescreening a customer’s identification details before and after the onboarding process allows you to monitor the compliance-centric risks the customer might bring, and gives you the necessary leads to analyze and report any suspicious activity.
For example, some profiles might play safe enough if they’re familiar with your account opening requirements and processes. However, post-onboarding checks will reveal high-risk information, which could severely jeopardize the goodwill of your organization.
Re-screening your onboarded profiles is just as important as the initial profile verification process. This ensures that you are retaining quality customers, giving your business relationships longevity.
Compliancely, a real-time identity verification infrastructure is designed to help a variety of businesses from various industries as follows.